Brazil’s CO2 emissions are currently among the lowest in the world relative to population and size of economy. This is because a high proportion of power (40%) is sourced from renewable resources, the majority from hydro-power. However, the carbon intensity of energy use in Brazil’s economy is on the rise and there has been a rapid acceleration in fossil fuel consumption in recent years, with the largest increases seen in the transport and industrial sectors.

Carbon finance has the potential to curb this emissions growth by making less carbon-intensive fuel choices more economically competitive with conventional fuels and increasing the financial gains associated with improving energy and process efficiencies.

The Project

This project involves a switch from fossil fuel oil to waste renewable biomass in the dolomite kiln at the Rima Industrial Plant, a factory which makes metal alloys for the steel, aluminum and car industries. As part of the Rima Industrial Plant process, large amounts of charcoal are already used in furnaces as a reducing agent. The majority of this charcoal comes from Rima’s own sustainably-managed forests of eucalyptus and pines which cover 40,000 hectares. This charcoal is produced on site in efficient kilns.

It is the waste charcoal dust which is now being used to substitute the fossil fuel oil, through the installation of a new burner system. The waste charcoal is considered renewable biomass since it is produced in managed forests and the residues are waste to Rima’s processes.

Triple Benefits

Social: The region has seen increased local job opportunities because it requires more manpower than the pre-project scenario.

Economic: The project has contributed to technology and capacity development as new kiln burners and process specifications were put into place for the new fuel. It has also been a flagship project in Brazil by showcasing how carbon finance can make less carbon-intensive fuel choices more economically competitive with conventional fuels.

Environmental: Emission reductions have resulted through the reduction in fuel oil use.